{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

balance sheet and financial disclosure

balance sheet and financial disclosure - THE BALANCE SHEET...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
THE BALANCE SHEET AND FINANCIAL DISCLOSURES THE BALANCE SHEET EQUATION – ASSETS = LIABILITIES + OWNERS EQUITY Limitations: 1.The balance sheet does not portray the market value of the entity as a going concern nor its liquidation value. 2.Resources such as employee skills and reputation are not recorded in the balance sheet. Usefulness: 1.The balance sheet describes many of the resources a company has available for generating future cash flows. 2.It provides liquidity information useful in assessing a company’s ability to pay its current obligations. 3.It provides long-term solvency information relating to the riskiness of a company with regard to the amount of liabilities in its capital structure. Categories are required for Full Disclosure ASSET CATEGORIES I. Current Assets -Will be converted to cash or consumed within one year(usually) or the operating cycle, whichever is longer. Operating Cycle of a Typical Manufacturing Company-cash to inventory to A/R to cash II. Investments and Funds 1.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern